Question

The budgeted unit sales of Hirst Company for the upcoming fiscal year are provided below:
The company’s variable selling and administrative expenses per unit are $2.75. Fixed selling and administrative expenses include advertising expenses of $12,000 per quarter, executive salaries of $40,000 per quarter, and depreciation of $16,000 per quarter. In addition, the company will make insurance payments of $6,000 in the second quarter and $6,000 in the fourth quarter. Finally, property taxes of $6,000 will be paid in the third quarter.
Required:
Prepare the company’s selling and administrative expense budget for the upcoming fiscal year. Also include the cash disbursements for selling and administrative expenses as per Schedule 7.


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  • CreatedJuly 08, 2015
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